Oct 07, 2021

Report: Government interference in cattle markets has consequences

Posted Oct 07, 2021 3:20 PM

Texas A&M University has completed a comprehensive report on the U.S. cattle and beef markets in response to a bipartisan request from the House Agriculture Committee.

Among its key findings is that proposals increasing government intervention and mandates will cost livestock producers billions of dollars.

The House Agriculture Committee holds its fourth hearing of the year on cattle markets Thursday. North American Meat Institute President and CEO Julie Anna Potts says the report aligns with testimony in each of the hearings that “supply and demand have the most influence on the price of cattle.”

The analysis is a 180-page book that looks at mandates included in proposed legislation to require minimum negotiated cash market purchases. Researchers claim the short-term impact of similar policy is a $2.5 billion negative impact in the first year and a cumulative negative impact of $16 billion over ten years, inflated to 2021 dollars.